Ethereum Price Predicted to Reach $10,000 By End of Year
Arthur Hayes, co-founder of BitMEX and a prominent crypto investor, has recently shared his insights on the factors that could potentially drive the Ethereum price to an all-time high of $10,000 by the end of the year. In a comprehensive analysis posted on Substack, Hayes highlighted the key catalysts that could contribute to a significant rally in the price of Ethereum.
Hayes pointed out that the current geopolitical landscape, coupled with expanding US credit policies and growing institutional interest in Ethereum, could create the perfect storm for a major price surge. He emphasized that as the US government leans towards wartime economic strategies under President Donald Trump’s administration, there could be a significant wave of credit expansion that may lead to the formation of asset bubbles, particularly in the crypto market. According to Hayes, Ethereum is poised to benefit the most from this scenario.
While Bitcoin has traditionally been viewed as the crypto reserve asset, Hayes noted that Ethereum has been somewhat overlooked in recent times, especially following Solana’s remarkable rebound post-FTX. However, he believes that the tide is turning, with Western institutional investors showing a growing preference for Ethereum-based assets. Hayes cited the increasing confidence in Ethereum from financial influencers like Tom Lee and a renewed interest in decentralized finance (DeFi) ecosystems as early indicators of a potential breakout.
Hayes’ venture capital firm, Maelstrom, has also shown a strong commitment to Ethereum and the broader ERC-20 ecosystem. Hayes predicted a significant 176.3% increase in Ethereum’s price from its current level of $3,619, setting a target of $10,000 for the cryptocurrency by the end of the year. Additionally, he forecasted that Bitcoin could soar to $250,000 before the year concludes.
In his report, Hayes drew a connection between Ethereum’s potential price rally and broader macroeconomic trends, especially related to US economic policies and geopolitical conflicts. He argued that the US is moving towards a form of state-sponsored capitalism or economic fascism aimed at boosting wartime production. This approach could lead to an increase in the fiat money supply, potentially resulting in inflation. To manage this inflation, Hayes suggested that the government may inflate bubbles in non-essential assets like crypto to absorb excess credit without destabilizing essential sectors like food and housing.
Furthermore, Hayes highlighted the role of stablecoins in supporting this economic environment, suggesting that as the crypto market cap grows, the amount stored in stablecoins, which are often reinvested in US Treasury bills, also increases. He projected that if the crypto market cap reaches $100 trillion by 2026, stablecoins could indirectly finance trillions of dollars in government debt, making crypto a crucial player in sustaining wartime fiscal policies.
As the crypto market continues to evolve and geopolitical tensions persist, the Ethereum price rally predicted by Arthur Hayes could indeed materialize, potentially reaching $10,000 by the end of the year. With growing institutional interest and favorable economic conditions, Ethereum may be on track for a significant price surge in the coming months.
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